Thanks to the very strong billionaire record, investors look forward to Warren Buffett as an example in any investment environment. As a president, he helped lead Berkshire Hathaway To an annual compound profit of about 20 % in 59 years, compared to the excess compound of about 10 % for S & P 500. Therefore, Povit clearly proved himself as a better investor.
This is why investors may closely listen to what this investment giant says in times of market problems. Buffett’s warning to Wall Street began last year, where he reduced the favorite stock holdings apple and Bank of AmericaThe positions were closed in Festival index Track the S&P 500, and build a standard level of cash. All this indicates caution in the valve market that continued to calm down.
In recent weeks, while investors are concerned about disappointing economic data and impact President Donald Trump’s tariff On the economy and companies’ profits, indexes lost their positive momentum. the Nasdak And S&P 500 until it slipped into a correction area, where more than 10 % of their latest summits decreased. Amid these disorders, Buffett’s warning to Wall Street with a distinctive loud voice. Let’s think about what Pavite said and what to do after that while correcting the market.
Photo source: Motley deception.
Therefore, first, a little background on Buffett and his last movements. Oracle of omaha is famous for choosing high -quality shares trading at reasonable prices or even bargaining and sticking to them in the long run. A classic example is coca colaAnd it is a company that he bought when it was traded for 15 times in the late 1980s – and still holds this stock today.
The billionaire is not affected by directions, and therefore, do not mind facing the crowd. In fact, he once wrote in a letter to the shareholders that he and his team “are trying to be afraid when others are greedy and to be only generous when others are afraid.” As mentioned above, this has increased the market performance over time.
In line with his traditions of the crowd, with the rise in shares last year, Buffett was a clear seller – with a total sales of $ 134 billion. This Berkchire Hathaway has helped raise his cash position to more than $ 334 billion. Although Buffett did not explain its reasons for these moves, one of the great factors that could stimulate his actions was the trend in assessments, as stocks reach expensive levels historically.
The S&P 500 Shiller Cape (the price rate to the modified profits) has reached more than 37, which has been reached only twice since the standard was launched as an indicator of 500 representatives. This scale is particularly interesting because it measures the price and arrow profits over a period of 10 years, so it explains the fluctuations in the economy. Certainly, stocks have become expensive, and Pavite is likely to be directed towards value. This is considered because it has made investment decisions.
Buffett’s movements may be a preliminary warning to Wall Street, but a recent comment can be considered from the best investor as this warning Even. It comes to President Trump’s definitions of imports. The Trump administration initially announced definitions on various goods imported from China, Canada and Mexico, then this step expanded to include aluminum and steel from any country.
This raised concerns among investors. As a result, earlier this month, the Nasdak Stock Exchange fell from the last one that was reached on December 16, followed by the S&P 500 last week when it fell from the highest level it reached on February 19. Both ended last week in the correction area.
In an interview with CBS last week, Buffett described the definitions as a “war” and said it could lead to high consumer prices. He added that when looking at the definitions, it is important to think “and what?” With regard to who will be responsible for costs. Buffett did not provide more details about the situation, but his words indicate that the customs tariff can represent the opposite wind of companies and economics.
So, does this mean that Pavite escapes from the market and you must also? Not necessarily. Puffette stuck to the usual investment principles, and Pavite was cautious last year with the high assessments and he is definitely monitoring the set of customs tariffs today. But as a long -term investor, Buffett has always purchased shares through all market environments, and this has proven to be a profitable strategy.
The key is to focus on evaluating each specific share and company prospects over time. Today’s tariff may constitute a challenge in the short term, but if the company is able to manage the situation and its long -term growth story appears strong, it may be the right time to buy.
Although Pavite did not accumulate in shares last year, he still reveals opportunities, and opened a position in Type brands In addition to shares Domino pizza In the last quarter, for example. All this means that in the S&P 500 and NASDAQ correction, the next thing to do is search for opportunities – quality players traded with cheap dirt assessments – capture, like Buffett, hold in the long run.
Have you ever felt that you missed the boat in buying the most successful stocks? Then you will want to hear this.
On rare occasions, our expert team issues an analyst A. “Double Permanent” stock A recommendation for companies they believe is about to pop. If you are worried that you have already missed your chance to invest, it is now the best time to buy before it is too late. And the numbers speak for themselves:
Nafidia:If you invest $ 1,000 when we doubled in 2009,You will have 315,521 dollars!
apple: If you invest $ 1,000 when we doubled in 2008, You will have $ 40,476!
Netflix: If you invest $ 1,000 when we doubled in 2004, You will have 495,070 dollars!
Currently, we make “Double Download” alerts for three incredible companies, and there may not be another chance like this any time soon.
*The stock consultant dates back from March 14, 2025
Bank of America is an advertising partner in Motley Fool Money. Adria Simino He has no position in any of the mentioned stocks. Motley Fool has positions in Apple, Bank of America, Berkshire Hathaway and Domino’s Pizza. Motley recommends a liar for the constellation. Motley deception has Disclosure.
